Silicon Valley Exchange Lists First Two Companies in ESG Push

(Bloomberg) -- A stock exchange hatched out of Silicon Valley that’s taking on established rivals in New York and Chicago is listing its first two companies.

Twilio Inc., a $63 billion cloud-based software company, and Asana Inc., a work-management platform valued around $12 billion, will list their shares on the Long-Term Stock Exchange Thursday, LTSE said in a statement.

The exchange, led by Silicon Valley entrepreneur Eric Ries, caters to environmental, social and governance investing because of its stricter protocols and long-term approach. Backed by venture-capital firms, it won approval from the U.S. Securities and Exchange Commission in 2019.

“When we work with companies, we help them understand they will win the public trust and gain access to ESG investors and others that are looking for a signal that this is what they should invest in,” Ries said in an interview. 

Companies on the new exchange agree to abide by listing standards. Among them are requirements to publish information on strategic planning and to align executive and board compensation with performance. Twilio and Asana, which are also listed on the New York Stock Exchange, have executives who were early investors in LTSE, Ries said.

“Creating long-term value for all of our stakeholders has been a part of Twilio’s DNA since day one,” Jeff Lawson, co-founder and chief executive officer of Twilio, said in the statement. “Dual listing on the Long-Term Stock Exchange is a natural extension of that commitment.”

LTSE is the 14th U.S. national stock exchange, with most owned by New York Stock Exchange parent Intercontinental Exchange Inc., Nasdaq Inc. and Cboe Global Markets Inc. Unlike the NYSE, the new exchange doesn’t have a physical trading floor.

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